Shares of JK Paper rallied over 5 per cent in morning trade on Friday after the company at a meeting of the committee of directors decided to sell its 20 per cent shareholding of OJPPL to OHC, one of the joint venture parties.

The company authorised certain directors and executives to sign the share purchase agreement and to transfer the relevant shares to OHC, whereby the company would cease to be a party of the joint venture, JK Paper said in a statement.

At 09:40 am, the JK Paper stock was trading 2 per cent higher at Rs 88.10 on NSE. It hit a low of Rs 86 and a high of 88.95 in the first 30 minutes of trade.

JK Paper had earlier announced with reference to the joint venture agreement with Oji Holdings Corporation, Japan (OHC), Marubeni Corporation, Japan and Oji India Packaging (later renamed as Oji JK Packaging) (OJPPL) for the purpose of manufacturing and sale of corrugated packaging products by OJPPL and had thereafter subscribed to 125.90 lakh equity shares of Rs 10 each, being 20 per cent shareholding of OJPPL.

 

Source: economictimes.indiatimes.com

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